Jack DeWitt, Alex Grant & Andrew Neal
Backpack Simulation
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Outdoor Backpack
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Product: Outdoor backpack
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Large Rectangle
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Wide + Chest
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Waterproofing
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$42 production cost
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Price: $102.00
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Placement:
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Direct, Internet, Outdoor and Department
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Promotion: Radio and Television
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Positioning:
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Target market: outdoor enthusiasts
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Progression of Strategy
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Increase of awareness
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Paid advertisement - reduced profitability
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Gained more market share
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Customer Development
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Cut in Production & Marketing costs
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New materials
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Reduced paid advertising
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X
Luxury
Weak
Outdoor
Durable
Positioning
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Clarity: Peak Performance, Tough (High)
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Consistency: Created a new message (not consistent)
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Competitiveness: YES (Very High)
Be different and stay relevant
Statistics - Final Quarter
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Units Sold: 427 backpacks
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Total Revenue: $28,096
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COGS: $20,069
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Net Profit: $187
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Market Share: 24%
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Advertising Costs: $4,200
Statistics -
Best Quarter
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Units Sold: 430
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Total Revenue: $31,264
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COGS: $20,210
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Net Profit: $3,824
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Market Share: 30%
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Advertising Costs: $4,450
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Final Bank Balance: $11,571.15
Takeaways
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Marketing isn’t a walk in the park!
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Sales Promotions and Investments
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Expensive, but worth it if targeted well directed at specific market segment
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Don’t be afraid to change the product
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Experiment with controls
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Management needs a united front
